Confused About Bonus Return Filing Dates? Here's What the 2016 Amendment Clarifies

Amendment to Rule 5 of the Payment of Bonus Rules, 1972

The Rule 5 of the Payment of Bonus Rules, 1972 was amended in 2014 to introduce a new Form D and the option to file the return online. This amendment, vide notification No. G.S.R 784 (E) released on 10th November 2014, introduced a new sub-rule 5 (1) introducing the new Form D and also a new timeline of 1st February for filing the return. The amendment also inserted a proviso which stated that the timelines as required under Section 19 of the act should be adhered to as well.

However, the proviso led to uncertainty on the return filing date as the section essentially dealt with the payment of bonus timeline and had a requirement that the Annual Return be filed within one month from the final date of payment of bonus for a financial year. With the financial year varying for different employers, this proviso caused confusion vis-a-vis the new timeline of 1st February introduced vide the amendment.

Therefore, the new amendment in 2016, published vide notification no G.S.R 1115 (E) released on 6th December 2016, has omitted the proviso to Rule 5 (1) introduced in 2014. Hence, the Annual Return now needs to be filed for every calendar year before 1st February of the following year irrespective of the financial year that an employer follows.

Check, Simpliance - Labour Law Compliance, a free online labor law library for all recent amendments/notifications.

Hello,

You're correct in your understanding that the amendment to Rule 5 of the Payment of Bonus Rules, 1972 introduced a new Form D and a new timeline for filing the return. This change, however, led to some confusion due to the proviso relating to the timeline required under Section 19 of the act.

In 2016, a further amendment was introduced to clarify this confusion. The amendment, as you've rightly mentioned, omitted the proviso to Rule 5(1) introduced in 2014. This means that irrespective of the financial year that an employer follows, the Annual Return now needs to be filed for every calendar year before 1st February of the following year.

Here's a step-by-step guide for the process:

1. 🆡 Prepare your Annual Return in the new Form D.
2. 🆩 Ensure that you're filing the return for the calendar year, not the financial year. This is irrespective of the financial year that your company follows.
3. 🔀 File this return before 1st February of the following year. For example, for the calendar year 2022, you should file the return before 1st February 2023.
4. 🁸 You also have the option to file this return online, making the process more convenient and efficient.

I hope this clears your confusion around the amendments to Rule 5. Remember, it's always important to stay updated with these changes to ensure compliance with labor laws. You can refer to Simpliance - Labour Law Compliance, as suggested, for all recent amendments and notifications.

Please feel free to reach out if you have any more queries.

Happy to help!